Completed contract method: Under the completed contract method, the revenue from construction contracts is recorded at the time of completion of the long-term contract. Percentage of completion method: Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred. To prepare: The journal entry to record the change in the method of recording long-term contracts.

Question

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Answer 1

Question

Chapter 21, Problem 21.2E

a.

To determine

Completed contract method:

Under the completed contract method, the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The journal entry to record the change in the method of recording long-term contracts.

b.

To determine

Completed contract method:

Under the completed contract method the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The footnote to disclose the change in the method of valuation of the construction contract.

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Answer 2

Question

Chapter 21, Problem 21.2E

a.

To determine

Completed contract method:

Under the completed contract method, the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The journal entry to record the change in the method of recording long-term contracts.

b.

To determine

Completed contract method:

Under the completed contract method the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The footnote to disclose the change in the method of valuation of the construction contract.

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Answer 3

Question

Chapter 21, Problem 21.2E

a.

To determine

Completed contract method:

Under the completed contract method, the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The journal entry to record the change in the method of recording long-term contracts.

b.

To determine

Completed contract method:

Under the completed contract method the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The footnote to disclose the change in the method of valuation of the construction contract.

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Answer 4

Question

Chapter 21, Problem 21.2E

a.

To determine

Completed contract method:

Under the completed contract method, the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The journal entry to record the change in the method of recording long-term contracts.

b.

To determine

Completed contract method:

Under the completed contract method the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The footnote to disclose the change in the method of valuation of the construction contract.

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Answer 5

Chapter 21, Problem 21.2E

a.

To determine

Completed contract method:

Under the completed contract method, the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The journal entry to record the change in the method of recording long-term contracts.

b.

To determine

Completed contract method:

Under the completed contract method the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The footnote to disclose the change in the method of valuation of the construction contract.

Answer 6

Chapter 21, Problem 21.2E

a.

To determine

Completed contract method:

Under the completed contract method, the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The journal entry to record the change in the method of recording long-term contracts.

Answer 7

Chapter 21, Problem 21.2E

a.

To determine

Completed contract method:

Under the completed contract method, the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The journal entry to record the change in the method of recording long-term contracts.

Answer 8

b.

To determine

Completed contract method:

Under the completed contract method the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The footnote to disclose the change in the method of valuation of the construction contract.

Answer 9

b.

To determine

Completed contract method:

Under the completed contract method the revenue from construction contracts is recorded at the time of completion of the long-term contract.

Percentage of completion method:

Under the percentage of completion method, the revenue from construction contracts is recorded in proportion to the cost incurred.

To prepare: The footnote to disclose the change in the method of valuation of the construction contract.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 21 - Are accounting changes permitted in financial...Ch. 21 - How do firms report accounting changes under the...Ch. 21 - Prob. 21.3Q Ch. 21 - How do firms account for changes in accounting...Ch. 21 - Prob. 21.5Q Ch. 21 - Prob. 21.6Q Ch. 21 - Prob. 21.7Q Ch. 21 - Prob. 21.8Q Ch. 21 - Do accounting errors that self-correct within two...Ch. 21 - Does a firm need to correct an error that...

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Chapter 21 Solutions